Correlation Between Lineage Cell and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both Lineage Cell and Shattuck Labs at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lineage Cell and Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lineage Cell Therapeutics and Shattuck Labs, you can compare the effects of market volatilities on Lineage Cell and Shattuck Labs and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lineage Cell with a short position of Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lineage Cell and Shattuck Labs.
Diversification Opportunities for Lineage Cell and Shattuck Labs
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lineage and Shattuck is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs and Lineage Cell is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lineage Cell Therapeutics are associated (or correlated) with Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of Lineage Cell i.e., Lineage Cell and Shattuck Labs go up and down completely randomly.
Pair Corralation between Lineage Cell and Shattuck Labs
Given the investment horizon of 90 days Lineage Cell Therapeutics is expected to under-perform the Shattuck Labs. In addition to that, Lineage Cell is 1.32 times more volatile than Shattuck Labs. It trades about -0.03 of its total potential returns per unit of risk. Shattuck Labs is currently generating about 0.0 per unit of volatility. If you would invest 131.00 in Shattuck Labs on October 25, 2024 and sell it today you would lose (12.00) from holding Shattuck Labs or give up 9.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lineage Cell Therapeutics vs. Shattuck Labs
Performance |
| Timeline |
| Lineage Cell Therapeutics |
| Shattuck Labs |
Lineage Cell and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lineage Cell and Shattuck Labs
The main advantage of trading using opposite Lineage Cell and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell position performs unexpectedly, Shattuck Labs can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn Therapeutics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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